[ad_1]
what happened
If you’re a grain farmer, watching prices these past few months has been like watching paint dry.
A year ago, a historically high price reversal encouraged active spot price management in robust spot markets. This year is different than previous years. Lower prices, increased supply, and carry are reflected in futures prices. The market is telling us to store the crop, whereas last year the market was saying we want the crop.
Why this is important
A flat price pattern can lull even the best marketers into a complacent mindset. Still, every day is a new day and a new opportunity. Finding opportunities can require searching and (frankly) a lot of effort. Sitting back and waiting to see what happens can be beneficial or disastrous, and this approach can have extreme consequences. There are ways to avoid extreme results.
What can you do?
As you start a new year, consider using this as an opportunity for a fresh start to develop good marketing habits. Develop strategies to manage storage production in 2023 and explore crop opportunities in 2024 and even 2025.
Good marketing habits come from within. There is no one-size-fits-all formula. However, there are some common themes that the author has experienced working with farmers over his 30+ years.
Time spent on marketing ranks high on the list. Schedule time to stay up to date with market news and trends. Paying attention to global developments, including Southern Hemisphere crops, may be just as important as communicating with local buyers. Price charts help determine potential support and resistance areas for setting sell targets. Spending time solely on marketing is a trait that many people find helpful.
Knowledge is also an important element in marketing. In fact, time and knowledge are closely related. Get into the habit of learning something new. As a product manager, you wear many hats, so know that it’s important to stay up to date with the many marketing alternatives available. Are there new markets? Is there a new manager in the elevator with whom to build a relationship? Are you knowledgeable about marketing tools, whether cash or paper? Recognizing changes in the situation may require the use of different marketing tools. there is. Rapidly rising interest rates are also having a big impact on decision-making, but in recent years many farmers no longer need to take this into account. In a low-price environment, every penny is precious, so keep an open mind and sharpen your pencils.
Discipline is more than just pulling the trigger when you know you should sell. Yes, emotions can come into play. Common sense suggests that if you’re waiting for a high price and it comes, it’s natural to think twice and wait for the price to continue rising before selling. Think of discipline as creating a consistent environment where you spend time staying knowledgeable and up-to-date on marketing opportunities and communicating with people who can help you achieve your goals.
Make it a habit to connect with an advisor and use the best tools to strategize as the market moves. Be open to changing your strategy as market conditions change. Be aggressive. If you don’t want to go to extremes, regularly communicating with experts and strategizing may be a great way to prepare and execute without hesitation. A balanced approach that incorporates cash sales and fixed risk repossession tools allows you to shift risk, stay in the market longer and participate in price appreciation.
It’s different every year. In the long term, developing a marketing approach that is appropriate for your situation can be as important to your business as choosing the right seed or fertilizer application. Details matter. Take the beginning of a new year as an opportunity to reflect, learn, and modify your future actions in order to make the best effort to achieve your goals.
Editor’s note: If you have any questions about this aspect, please feel free to contact Bryan Doherty at Total Farm Marketing: 800-334-9779.
Disclaimer: The data contained herein is believed to be from sources reliable but cannot be guaranteed. Individuals acting on this information are responsible for their own actions. Commodity trading may not be suitable for all recipients of this report. Futures and options trading involves significant risk of loss and is not suitable for everyone. You should therefore carefully consider whether such trading is suitable for you in light of your own financial situation. Instances of seasonal price fluctuations or extreme market conditions are not intended to suggest that such fluctuations or conditions are or are likely to occur. Futures prices already factor in seasonal aspects of supply and demand. No representation is made that scenario planning, strategy, or discipline will guarantee success or profits. Any decisions you make to buy, sell, or hold futures or options positions based on such research are entirely your own and should not be deemed endorsed or attributed in any way by Total Farm Marketing. yeah. Total Farm Marketing and TFM refer to Stewart-Peterson Group Inc., Stewart-Peterson Inc., and SP Risk Services LLC. Stewart-Peterson Group Inc. is registered as an Introducing Broker with the Commodity Futures Trading Commission (CFTC) and is a member of the National Futures Association. SP Risk Services, LLC is an insurance agency and equal opportunity provider. Stewart-Peterson Inc. is the publisher. A customer may have ties to all three companies. SP Risk Services LLC and Stewart-Peterson Inc. are wholly owned by Stewart-Peterson Group Inc. Unless otherwise noted, the services referenced are those of Stewart-Peterson Group Inc. Presented for solicitation.
About the author: With 30 years of wisdom at Total Farm Marketing and a following across the grain belt, Brian Doherty has a deep passion for clients, their success, and long-term, rewarding relationships. Dougherty is a senior marketer.He is involved in Farm Marketing as Vice President of Advisor and Brokerage Solutions. He has a deep understanding of tools and markets, and he listens and communicates purposefully and clearly to help clients understand their decisions.
[ad_2]
Source link
